SSM’s price fell from 44¢ per share the day before the article was published to 38¢ by the end of the day.

Many of the problems stem from a lack of skilled labour. Where most telco systems are based on copper, the NBN seeks to replace most of this with fibre-optic cabling, which requires a large number of workers freshly trained in its design and installation.

Exacerbating the problem for Service Stream is the fact that its joint venture was responsible for Western Australia, South Australia and the Northern Territory. With the NT and WA experiencing resources booms, major projects have been attracting many of the available workers.

In a statement to the Australian Securities Exchange, Service Stream said it was cutting financial year 2013 earnings guidance to $20 million, almost half the $38 million guidance previously on record for the year.

But it also said the charge relating to the withdrawal is a relatively small $3 million. Much of the damage caused by the issue will be reputational.